Cisco To Invest Big In AI With New $1 Bn Fund
The company is already funding promising AI startups including Cohere, Mistral AI and Scale AI
Cisco launched a USD 1 billion fund aimed at investing in artificial intelligence (AI) startups on Tuesday, joining a growing list of technology giants eager to capitalise on the burgeoning AI sector.
The company revealed that its investment arm is channeling funds into promising startups including Cohere, Mistral AI and Scale AI. With nearly USD 200 million already committed, Cisco is positioning itself as an important player in the AI investment landscape.
Scale AI, a data-focused AI startup, is currently valued at approximately USD 14 billion. Meanwhile, foundation model developers Cohere and Mistral AI are reportedly in talks with investors to secure funding that would value each company at around USD 5 billion. Foundation AI models, which are built using extensive data sets, have the versatility to be applied across a wide range of use cases, marking them as critical components in the AI ecosystem.
Cisco’s move follows the trend set by Microsoft-backed OpenAI, which ignited an AI frenzy in 2022 with the release of ChatGPT. Since then, other tech heavyweights like Meta and Amazon have also ramped up their investments in various AI startups, seeking to harness the transformative potential of AI technologies.
Over the past several years, Cisco has made over 20 acquisitions and investments focused on AI, reflecting its commitment to advancing generative AI and machine learning.
(Inputs from Reuters)
